Staff recommends that the City Council approve the development agreement with TKJ Development, LLC.

City Council will consider annexation of Tract 2-C of COS 983 Tract 2 Amended; Tracts 2-G-1 and 2-H-1 of Amended Tracts 2G and 2H of Plat Amending Tract 2-F of COS 983; Tract 14 of COS 983 Amending Tracts 2B & 13.  The property proposed to be annexed is located north of King Avenue West and east of 48th Street West.  TKJ Development desires to develop a mixed-use development.  Typically, as a condition of approval of the annexation, the property owner enters into a development agreement with the City of Billings outlining necessary public improvements for council consideration. The Development Agreement outlines the off-site improvements necessary for development, including access to the site, construction of water and sanitary sewer, and storm drain.

City Council may:

• If the annexation is approved, then approve the development agreement with the property owner; or
• Disapprove the development agreement.  If the agreement is not approved, the responsibility for infrastructure improvements would be in accordance with policies in place at the time of development.  

There is one requirement of the development agreement that would not be required upon site development.  The requirement within section 5 requires the dedication of right-of-way.  If the site develops without subdividing, the city would not be able to acquire right-of-way.

The financial impact of the remainder of the agreement is dependent on policy changes that may occur before development. If development occurs before any changes to the City's development policies, there would be no financial impact. If development occurs after City development policies change, the financial impact would be dependent on the changes.